As you already know, our systems have an excellent reputation and one of the elements is that our systems are robust and this has everything to do with the quality of the steel we use and the quantity of which is important in each system signed Solutech.
You also know that we just learned a few days ago that our American neighbors have decided to tax steel and aluminum 25%. So for what we manufacture here and buy from our main suppliers who import steel or steel components this 25% tax will apply; in addition CANADA has decided to impose the same 25% tax on steel and aluminum on the Americans. So yes we are impacted by this announcement from both countries, for all our customers.
Here is the advice we received from one of our suppliers:
Following on from what you hear everywhere about the steel and aluminum industry, here are the latest developments:
Canada announced yesterday that it will enforce a 25% customs tax on steel and 10% on aluminum from the US and this from July (cleared in July), in response to the US government which has also imposed an equivalent tax on Canada.
For now, we do not see any major changes (at least in the short term) in the price of steel bars (round, channel, angle, flat) produced in Canada. We should continue to have availability (without too much surplus) because the part that went from Canada to the US is not big enough to create major upheavals in the Canadian market. For items that are produced only in the US side, there will certainly be supply difficulties to predict if the situation persists.
Warning ! The impact on the coils (sheets), tubes and steel plates will be different. There may be surpluses in the coil and in the tube (some dimensions), which could (and I only say could) result in any drops. On the other hand, because our plate is purchased mainly from the US side and the Canadian supply is extremely limited, the 25% surtax could hurt this product.
For non-ferrous (aluminum, stainless steel, galvanized), only INOX may be problematic in the short term at home. Everything else is bought either in Canada or import. For stainless steel, arrivals will cost 25% more from July 1st. The main danger comes from the fact that overnight, pricing can fall and of course, we want to avoid as much as possible to store too much. Future arrivals will therefore be limited for the moment.
Given all this instability, it is clear that suppliers will not take the risk of storing large inventories because everything can change in seconds. This means that notwithstanding the price, this can affect our delivery times if it is impossible to obtain the raw material.
At Solutech, we will do everything in our power to minimize significant impacts for our customers.
Stéphane Côté, CEO